Million

April

<ul class="wp-block-list cnl-post-highlights-list">
 <li>Robinhood will pay $45 million to settle SEC charges for multiple securities law violations.</li>  
 <li>SEC found Robinhood failed to report suspicious activities and protect customer data between 2019 and 2022.</li>  
 <li>Robinhood agreed to an audit and corrective measures to address compliance issues highlighted by the SEC.</li> 
</ul>  
<p>Robinhood Markets has been <a href="https://www.sec.gov/files/litigation/admin/2025/34-102170.pdf" rel="noopener noreferrer nofollow">charged</a> by US Securities and Exchange Commission for violating federal securities laws. Two affiliated broker-dealers, Robinhood Securities LLC and Robinhood Financial LLC, are accused in the charges. Robinhood agreed to pay $45 million in penalties to settle.</p>  
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<p>Robinhood Securities has agreed to pay $33.5 million while Robinhood Financial will pay $11.5 million. The entities admitted to certain findings and agreed to be censured as part of the settlement.</p>  
<h2 class="wp-block-heading" id="h-robinhood-violations-spanning-multiple-areas"><strong>Robinhood</strong> <strong>Violations Spanning Multiple Areas</strong></h2>  
<p>Robinhood has been fined for a number of violations by the SEC. From January 2020 to March 2022, Robinhood is guilty of not reporting suspicious activities in a timely manner. The company did not take adequate measures to combat identity theft from April 2019 to July 2022.&nbsp;</p>  
<p>From June to November 2021, customer information was compromised through unauthorized access, yielding cybersecurity issues. The SEC said these failures undermined protections for customer data.</p>  
<p>Robinhood also failed to maintain electronic communications as required by law. The violations occurred between 2020 and 2021 and involved preserving off-channel communications.&nbsp;</p>  
<p>Operational databases were also poorly managed which left them at risk of deletion or unauthorized modifications. These deficiencies violated federal recordkeeping requirements and further undermined compliance.</p>  
<p>Robinhood Securities committed additional violations related to <a href="https://www.sec.gov/investor/pubs/regsho.htm" rel="noopener noreferrer nofollow">Regulation SHO</a>. From 2019 to 2023, it failed to meet close-out, order-marking, and locate requirements for short selling.&nbsp;</p>  
<p>The SEC also found inaccuracies in <a href="https://cryptonewsland.com/judge-denies-krakens-motion-sec-case/" rel="noopener noreferrer nofollow">securities trading</a> data submitted by Robinhood Securities for over five years. These errors affected the agency’s ability to monitor trading activities effectively.</p>  
<h2 class="wp-block-heading" id="h-corrective-actions-required"><strong>Corrective Actions Required</strong></h2>  
<p>Robinhood has agreed to conduct an internal audit to address <a href="https://cryptonewsland.com/tether-usdt-faces-eu-compliance-hurdles-as-mica-deadline-approaches/" rel="noopener noreferrer nofollow">compliance</a> issues with off-channel communications. Robinhood Securities must also certify the resolution of deficiencies tied to Regulation SHO violations.&nbsp;</p>  
<p>These steps aim to prevent similar violations in the future. The SEC stated that broker-dealers must fulfill legal obligations to ensure market fairness and integrity. Robinhood’s operations will remain under scrutiny as the firm implements the agreed measures.&nbsp;</p> 
<p>The post <a href="https://cryptonewsland.com/robinhood-settles-sec-charges-with-45-million-penalty/" rel="noopener noreferrer nofollow">Robinhood Settles SEC Charges with $45 Million Penalty for Regulatory Violations</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Cryptonewsland</a>.</p>

Robinhood Settles SEC Charges with $45 Million Penalty for Regulatory Violations

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